If You Want To Survive, You Have To Go Through The Long Payment Period.

For young young designers,

This partner makes people love and hate.

Every year the new rookies from the central Saint Martin, Royal College of Art, Parsons and other top design institutes all yearn for their favor, but the terms of exchange are likely to be an "unequal treaty".

How did they succeed in invincible and shift the industry risk to other links in the industrial chain? Fashion news website BoF and the two sides of the game came to an in-depth discussion.

In the whole fashion industry chain, it will finally face the consumers.

Most of the profits were seized, and the rest went into the pockets of brands, factories and suppliers.

However, as the biggest beneficiaries, retailers are unwilling to take any risks, resulting in a very unfavorable payment treaty to the brand side.

The general public is accustomed to the two paction modes of "prepaid delivery" and "cash on delivery", but they are rare in fashion industry.

Including 10 Corso Como, the London concept store LN-CC, the department store, the concept store, the electricity supplier will attach the "lag payment" clause in the next contract.

It will take at least one month to get the money from the retailers after delivery.

This means that those 20 - year old youngsters must strive to seek outside funding while they are careful in calculating and putting their feet into thin ice.

The cautious development mode is safe for a while, but it is hard to be left behind by the rapidly developing industry colleagues.

Thus, a new mode -- agent emerged.

Its concept is based on orders.

For example, a designer brand received an order from Barnes boutique: 100 skirts.

For production, it signs a loan treaty with an agent, and sometimes the interest is as high as 15%.

When Barnes pays 2 months later, the recipient will become an agent directly.

Agents, showroom, discounts, retailers draw... Half of the designer's net profit evaporates.

It will take at least 10 months to see the fruits of labor when it comes to success.

The figures of the British Fashion Association in the 2014 Annual Report seem not to be hard, but they do not really comfort most of the new designers.

The late payment may not be able to fill up the growing gap in funding. Even more designers are busy with the next season's new products.

7, 8 years ago, the British new designers were once notorious.

The founder of Imran Amed, BoF, heard many buyers complain that these newcomers were suffering from severe procrastination, and the quality of the products delivered was far from the samples.

In some extreme cases, the clothing received by retailers has obvious smoke and stains, which can not be sold at all.

Today, things are getting better, but young designers and retailers do not have access to information before, and the industry does not explicitly specify payment terms and deadlines.

If we can stick to it and wait until the designers are bought by large groups or attract private placement, they will naturally raise their bargaining power with retailers.

But before that, if the status quo remains unchanged, then only the early daughter-in-law can be expected.